MANAGEMENT

Detailed explanation-1: -Credit lines, bank loans, and bonds with obligations and maturities greater than one year are some of the most common forms of long-term debt instruments used by companies. All debt instruments provide a company with cash that serves as a current asset.

Detailed explanation-2: -Long-term debt is any debt that is due after one year. This could be a business loan that needs to be repaid in five years, a line of credit that must be repaid in seven years, or even a mortgage that must be repaid over the course of 15 or 30 years.

Detailed explanation-3: -External sources of finance refer to money that comes from outside a business. There are several external methods a business can use, including family and friends, bank loans and overdrafts, venture capitalists and business angels, new partners, share issue, trade credit, leasing, hire purchase, and government grants.